Experienced professionals guide you through the complexity of retirement plansRetirement benefits are popular with workers, but 401(k) and other plans are complicated to manage. Thanks to First American Bank, your company or organization can offer these benefits with our assistance in making sure your plan is properly designed and administered. From helping select investment funds to educating your employees, we offer a full range of services that have added value for both employers and plan participants. The services we provide are customized to your needs and the design of your plan.
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However, if you are still working, you are not required to begin RMDs from your employer sponsored plan until April 1 of the year following the year in which you terminate employment. This exception does not apply if you own more than 5% of the employer, nor does it apply to IRAs.
Special Note: For 2020 the CARES Act temporarily suspended the RMD requirements from IRAs and qualified retirement plans provided the employer sponsoring the plan adopts the CARES Act provisions. Check with the sponsor of your retirement plan to confirm if you must take an RMD for 2020.
a. $19,500 for 2021;
b. the maximum deferral amount allowed under the terms of the plan; or
c. the amount that allows the plan to meet the required nondiscrimination tests.
In addition, if you attain age 50 or older by December 31, you may defer an additional $6,500 catch up contribution.